New Delhi: According to global ethanol expert Plinio Nastari, India can achieve the target of blending 10 per cent ethanol with petrol only if there is price parity between sugar and ethanol. The country has set an Ethanol blending target of 10 per cent by 2022 and 20 per cent by 2030.
The Government is emphasising on ethanol production to strengthen the financial condition of sugar mills and reduce the sugar surplus in India. The Centre has asked the sugarcane growing states to consider ethanol production as the main product to reduce dependence on imported fossil fuels.
“Long-term price policy is required in India to define the ethanol versus sugar parity which will give visibility to the investors for making investment to boost production capacity.” Nastari was quoted as saying by PTI.
Last year to assist sugar mills, the government increased the ethanol price from C heavy molasses from Rs.43.46 per litre to Rs.43.75 per litre, and the price of ethanol from B heavy molasses hiked from Rs.52.43 per litre to Rs.54.27 per litre. Price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at. 59.48 per litre. Also, last year, sugarcane MSP was hiked from Rs 29 per kg to Rs 31 .
To Listen to this News click on the play button.